American Banker had an interesting column co-written by William Isaac (former FDIC chairman) and William Dunkelberg on how the Fed has run out of tools to help small business. The most interesting part is the comment of M, who provides a succinct summary of the...

Last night, I was hosted by Andrew Chi Fai Chan, Director of the EMBA program at Chinese University of Hong Kong (CUHK) and civic leader, at the downtown campus, where I had the privilege of speaking to a mix of current students and alumni about...

R&R Consulting, an eleven-year-old Structured Finance consultancy expert in valuing complex securities, is offering new analysis to gauge the credit of prime non-agency residential mortgage backed securities. R&R’s analysis, which they dub PrimeTRAK, provides a current credit valuation on the synthetic mortgage index known as...

Moneyball by Michael Lewis is a story of the Oakland Athletics, an under-capitalized baseball team managed by Billy Beane. Unable to afford expensive talent, Beane turns to sabermetrics, baseball statistics that measure in-game performance, to select a lineup of cheaper players with lopsided abilities. Beane's own...

Two years ago, I switched. And, to better understand my sleek, shiny, beautiful new gadget, I found myself spending more and more time at the Fifth Avenue Apple Store. I discovered Apple was attracting - employing - young people from all walks of life (even Wall...

"The real question throughout the subprime crisis was whether the collateral manager's role was legit, or whether these firms lent their names and the appearance of objectivity to facilitate the sale of securities that were defective," said Ann Rutledge, principal of structured-finance consulting firm R&R...

David Webb’s 14 June 2011 blog, Nine Dragons spotlights SFC regulation of CRAs, raises a legitimate and important question about the timing of credit rating agency press releases, but his analysis misses the mark. http://bit.ly/mCSS8C Mr. Webb, former investment banker, small-cap investor and self-proclaimed advocate of...

Dear Prof.Rutledge, dear Prof. Raynes, ..., you distinguish value creation and optimization.This distinction is important indeed, I may ask you to let me know, where this critical distinction is expanded and profounded ( literature, artcles etc). Yours sincerely, Hubert Gantz WP.u.StB. /CPA

Dear Mr. Gantz, First, let me thank you very much for your question and apologize for taking so long to respond. I will first quote from the book so that the context of your query is clear to other readers: "Optimization increases average wealth by redistributing the margins of risk and return locally; value creation  increases total wealth," Raynes & Rutledge, The Analysis of Structured Securities, OUP 2003, p. 92. Optimization is a financial rearrangement that produces more bang for the buck.